Are your personal or business debts getting out of control?

Are your personal or business debts getting out of control?

Our company provides straight-forward bankruptcy tips and advice. At Bankruptcy Melbourne we know that the very thought of bankruptcy is scary, and if it becomes a reality it is totally frightening. We understand that you are certainly feeling very overwhelmed, trapped or maybe like you have zero choices left, and so we would like to help lead you through the process.

But here’s the thing – you’ve pretty much endured the most difficult aspect of the process – you have taken that primary step towards placing your personal and/or business debts behind you and getting along with your life; you’ve found us.

The next step is simply to find out if bankruptcy is actually right for you. There’s a few points you will need to know before making that decision so we recommend that you continue browsing around this site, it has plenty of great information, or you can just grab the phone and give us a ring on 1300 818 575.

You Can Be 100 % Debt Free!

Can you imagine a future without financial institutions’ hounding phone calls and looking forward to the mail once again? There are a couple of things you should know before you make that formidable decision. First of all, the sooner you act then the more options you will have.

5 Questions you must answer before you declare yourself bankrupt.

There are 5 crucial questions you need to have an solution to before you declare bankruptcy. If you want to know what exactly they are, feel free to download our free e-book on the right hand part of this page. This e-book is going to address these big 5 questions specifically and offer you peace of mind that you are doing the best thing.

Get your FREE copy of the Big 5

* We pledge not to barrage you with e-mails and phone calls when you sign up for our free e-book. In fact, we vow to only get in touch with you once to see if we are able to help you even more and that’s it.

Insolvency Options

Is Going bankrupt my only choice?

No! Generally there are various options available to you. Listed here is a graph detailing the advantages and issues of the various debt solutions offered. This chart is by absolutely no means an all-encompassing resource, but it will allow you to make a well-informed choice.

Just what is a Personal Insolvency Agreement?

This is an adaptable understanding among you and your lenders. It is controlled through a trustee who supervises the amount of money you will have to pay out and when you have to pay. Once those circumstances have actually been met you are generally then free to begin again with a new beginning.

What is a Debt Agreement?

A debt agreement enables a debtor to take part in an plan with their lenders to repay their bills without being made bankrupt.

You can’t enter into a Debt Agreement if you have been bankrupt, or if you are already in a debt agreement. Also keep in mind that there are also income restrictions, as well as restrictions on property value and unsecured debt value. If you want to know more feel free to contact us on 1300 818 575.

Why do some business say Debt Agreements or Personal Insolvency Agreements

The reason you find plenty of expensive commercials on the TV in the Adelaide area inviting you to go for one of these alternatives is that there is lots of cash in it for the companies that administer them. You will notice, if you havent already, that every company has the tendency to give (biased) advice

according to the product that they offer. For instance, Debt Agreement Companies ridicule bankruptcy companies and so it goes with much of the financial services industry.

Should I consider a Debt Consolidation Loan?

There are sometimes the very exceptional conditions where a debt consolidation loan is the most ideal plan. Usually the problem with them is that all it is really doing is wrapping 5-15 various debts into one enormous debt. If you are fighting to pay all your various loans now, then why do you believe it will be amazingly easier to get one substantial bill? 9 times out of 10 it is just not going to make it easier. Just to make all of it worse you typically will have to pay up front for the ‘ luxury’ of this choice. If you want to get some clarification or more information on this, then just simply contact us on 1300 818 575 or go and download ‘The Big 5’ e-Book.

Bankruptcy and the Family Home

If I apply for bankruptcy can I keep my house?

In many cases the answer is yes. If this is a significant issue for you then the best way in order to get the answer is to call us here at Bankruptcy Experts Melbourne on 1300 818 575 and once we have an understanding about your circumstances we can provide you a clear picture over the phone. Practically everybody is emotionally connected to their home; it’s where the kids have grown up, it’s where you appreciate life on a day to day basis. People commonly think it’s an inescapable effect of bankruptcy and for that reason they press themselves to the verge of madness to not surrender the family house.

Will the bank let me keep my house even if I’m a bankrupt?

Why might the bank want bankrupt customers? Wouldn’t they like to sell your home and not take the chance? Remember – the bank that has kindly lent you the money for your house is making good money each month in interest from you, month in and month out. So long as you maintain up to date with your payments then the bank would like you in there at all costs. On the other hand it’s not the bank’s call – if a trustee determines that there is enough equity in your house the trustee will make you and the bank to sell your house.

What factors would contribute to losing the house?

Equity! If you are up to date with your repayments then the most considerable issue is equity. A trustee has a job to gather up as much money in order to help cover your debts once you go bankrupt. Equity is the ticket here. If you have $300,000 equity in your house and you have $100,000 worth of debt and no other way to pay off the debt then the trustee sees your equity as a way to repay your debt therefore they will sell your house to repay the debt and give you whatever money is left from the sale.

How is equity determined?

Many people are not quite certain about exactly what equity is, as well as how it is figured out– but it is truly essential to find out because if you understand, it can mean the big difference between keeping and losing your house. There are a few things you should know here. Firstly, your gut instinct or presumption about the true worth of the home is perhaps far too generous. The majority of people believe their house is worth more than it truly is.

Secondly, when you declare insolvency the trustee may ask about how you formed your price for the home. In many cases they will call for more information about your valuation, maybe a rates notice or a real estate agency’s valuation or a registered valuation. A simple method would be to search www.realestate.com.au then select the ‘Sold’ tab on that site and search for current house sales in your street or neighbourhood. This may help you get some concept of the reality of the marketplace right now. Remember, the appraisal is based upon a quick sale not a slick real estate agent’s marketing and advertising campaign. So If you actually want a good idea, I would likely suggest getting a valuer and telling them to give you 2 prices for your house, one as a regular sale, and the other as a ‘quick sale’. This will give you a better awareness for your home’s worth. Knowing this step is vital, so get some advice before going ahead, call us on 1300 818 575.

What if my Partners name is on the Home Loan?

Usually when a couple purchase a home one income isn’t really enough to get approved for the loan, so the bank/lender will have each partners register for the loan. When your home is purchased both names are on the mortgage from the bank and the title deed of the home as joint tenants.

Let’s say Mick and Susie got a house 4 years ago for $400,000 with no deposit so their mortgage was also $400,000. Mick is a plumber and has to go bankrupt but Susie has a good job teaching high school and doesn’t need to go bankrupt.

However, the house has not risen in value in the 4 years they have owned it and they also have merely managed to pay interest on the loan during that time so essentially they still have a $400,000 mortgage on a home worth $400,000.

Mick can then file for bankruptcy and just as long as they manage to keep paying the mortgage, rates etc. they can continue to keep the house for the 3 years Mick is bankrupt. This action will, in no way, affect Susie’s credit rating or force her to go bankrupt as well. There is quite a lot to consider when it concerns homes and bankruptcy so if you have questions don’t hesitate to phone us about your house on 1300 818 575.

What if My House has too much Equity what can I do?

If your house has plenty of equity and you are still drowning in debt, there are still several options available to you– it may be complicated, but the important step is to speak with an expert to try and get ahead of it. In truth, this concerns cars or other assets you may have as well. What you can not afford to do is assume that everything will be ok. It is the bankruptcy trustee’s job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting this wrong will be catastrophic! Before you take your next step get some advice. We provide a free, initial consultation; just call us today on 1300 818 575.

Bankruptcy and Employment

Will my employer be advised?

Generally there is actually no reason for your job to be advised of your bankruptcy. In circumstances where you earn above the threshold amounts of income while you are bankrupt and you are required to make an income contribution, you organise those payments yourself, it doesn’t go via your company.

Who will know about my bankruptcy?

There are four groups of people that will learn that you are bankrupt.

Individuals that you tell

Your creditors or people you owe money to

Individuals that see your credit file while youre bankrupt. The only way this will happen is if you sign a privacy form for them to access your credit history. You only ever do this when you apply for a loan.

You will be listed on the National Insolvency Index on the internet somewhere. Its hard to find and people need to pay to see if someone is bankrupt on it.

At Bankruptcy Experts Melbourne, we are fully aware that there is nonetheless a stigma attached to bankruptcy. We understand this problem and we can help to ensure that if you declare yourself bankrupt that you don’t have to go to court, get your name in the papers or be publicly made out to be a criminal or some sort of failure. We can help ensure that bankruptcy is quick and easy. In fact, the whole process will only take a few days. It makes it possible for the ordinary person to get away from debt and on with their lives. For more detailed facts about bankruptcy and your job, download ‘The Big 5’ e-book.

Will I lose my job if I file for bankruptcy?

The response to the question is – yes, but only in some cases. The issue with some occupations isn’t that you simply cannot do the job any more, it’s more an issue of specialist bodies or associations that view bankruptcy in a dim light and can make things problematic for you.

What we would definitely propose is that you do your very own research here. It will make a big difference if you investigate this process before filing for bankruptcy because that may help you decide. Check if your job is on the diagram below. If it is, we suggest talking to them personally and explaining your issue. A few organisations won’t have a problem with your bankruptcy as long as it wasn’t accompanied by shady or suspicious actions. If you think your employment may be affected by your possible bankruptcy call us here at Bankruptcy Experts Melbourne on 1300 818 575.

Bankruptcy Income Thresholds

Just how much can I earn when I’m bankrupt?

There are actually no constraints on the amount of you can earn, but if you get over a certain amount, some of the extra can be taken by the trustee to repay your creditors. This means that you cannot be refusing to pay your debts and still take home a 6 figure salary– it just wouldn’t be fair to the people you owe money to. So how much can you earn before you start paying back money to your creditors via your trustee?

Bankruptcy and Income

First of all, it is important to know that changes are coming to the world of bankruptcy. If you should know what is taking place then pay attention now. Since March 2016 there have been adjustments to the Income Threshold amounts. This suggests that there are changes to just how much money you are able to keep when bankrupt. This is your net income after tax and child support (if applicable) are subtracted. If you’re in a business when bankrupt then, obviously, it’s also net (after tax) of business spending, which is generally calculated annually.

Your net income may be controlled to consider things like salary sacrifice and sizable superannuation payments etc. Your net income might also include more unusual costs suffered as a result of being employed. For example, if you are subjected to an unusually high amount of travel costs to get to and from your job this can often also be taken into consideration. Your bankruptcy trustee needs to ascertain your real net income, depending on the bankruptcy rules.

The income threshold figures are also per person and are adjusted by the Government each and every March and September to permit the movement in the cost of living.

Just what can my partner earn if I go bankrupt?

There is no limit to what your spouse/partner can earn. There are a few implications that must be thought about in some circumstances, but most of the time your partner is a completely different legal entity and will not be impacted financially when you declare bankruptcy. Just as a word of caution – this could alter if you have joint loans together, so take care about the implications of that. If you are unsure just call us on 1300 818 575.

Who is considered a dependent?

This might be any person, of any age, that lives with you and earns less than $3,343 per year. If, in the case you have a child or children that you give child support for and they do not live with you full-time, then you can not claim these particular children as dependents.

Suppose my spouse or partner and I both need to go bankrupt?

If a couple need to both declare bankruptcy and you have no dependents then you can each earn $1,048.25 net. An useful way to understand it is the same income rules apply for each person individually.

Self Employment & Bankruptcy

Can I forfeit my small business if I go bankrupt?

The straightforward answer is no, you do not have to but you do need to get the right guidance. Company insolvency laws are very involved and you need to tread cautiously if you wish to continue to be self-employed.

You may already recognise that you can no longer be the director of a Pty Ltd Company if you are bankrupt. However, that doesn’t inevitably mean you can’t run your very own business and employ staff etc.

What happens if I have both Business and Personal Debts?

If you are a company owner and you have a mix of personal and business debts then it is actually possible to have most, if not all, of the debts eliminated with bankruptcy. Note this is an intricate process and requires special attention. The truth is, personal bankruptcy will not automatically suggest business bankruptcy as well.

Regardless if you administer your business as a Sole Trader, Partnership, Company or Trust we can help guide you through your options. Feel free to call us on 1300 818 575 for a no commitment FREE consultation.

Should I put my company into liquidation?

Among the main reasons you might wish to consider liquidation instead of bankruptcy is due to the fact that if you liquidate your company, it doesn’t inevitably mean you have to go bankrupt. In Australia, businesses that become insolvent have a few alternatives, like liquidation, voluntary administration and so forth. If you need to know more call us on 1300 818 575.

What effect will bankruptcy have on my business?

There are rules for business owners that are bankrupt. For instance, as a bankrupt company owner you may be in your very own business as a sole trader only. For some small business owners, bankruptcy can affect their ability to run the business because of the licensing problems. For example, a builder with a builder’s license can not continue to use that license for the 3 years she or he is actually bankrupt.

There are actually other implications for business owners whilst bankrupt that need to be considered. If you need to know more about this just feel free to call us for a no obligation, free consultation on 1300 818 575.

Isn’t it illegal to run a related business after bankruptcy?

It could be. There are factors when and if you declare bankruptcy as a business owner. You can not run up heaps of debt in your business, then go bankrupt and after that open the doors the next day like nothing has taken place. There are laws in place to prevent these ‘Phoenix companies’ rising up out of the ashes of an old company. Don’t get overly worried about what you can and can’t do as a company owner; just get the correct advice by calling Bankruptcy Experts Melbourne today on 1300 818 575.